Home Uncategorized Apple Services Business Grows Double Digits, Helps Boost Quarterly Revenue

Apple Services Business Grows Double Digits, Helps Boost Quarterly Revenue

Double-digit growth to Apple’s services business helped the tech giant weather a difficult quarter amid the ongoing global coronavirus pandemic.

The iPhone maker said Thursday that the division behind Apple Music, Apple TV+ and other software offerings grew its net sales to $13.2 billion during the three-month period from April to June.

Though that represents a nearly 15 percent growth rate compared with the same period in 2019, services is still less than a third of the size of Apple’s products division, which brought in $46.5 billion during the fiscal third quarter.

CEO Tim Cook, just one day after appearing before Congress, told investors that the double-digit growth for both products and services “is a testament to the important role our products play in our customers’ lives and to Apple’s relentless innovation.”

All told, Apple had revenue of $59.7 billion and earnings of $2.61 per share. Analysts were looking for $52.3 billion in revenue, according to FactSet, and earnings of $2.07 per share.

The company also announced a four-for-one stock split that will take place Aug. 24 “to make the stock more accessible to a broader base of investors.”

Investors responded favorably to the earnings news, and the stock was trading up nearly 5 percent after hours.

The iPhone is still the largest revenue generator for Apple, bringing in $26.4 billion during the period. Services, which also encompasses the App Store and iCloud, is the second largest.

Apple has been focused on growing that business as it seeks to become less reliance on device sales. On a call with investors, Cook revealed that Apple had met his goal of doubling services revenue six months ahead of schedule.

It’s unclear how impactful a trio of new services — Apple TV+, Apple News+ and Apple Arcade — have been for the segment’s growth. On the call, Cook said that video and music had all-time record revenue but he didn’t provide specifics.

It was because of the App Store that Cook was asked to appear before the House Judiciary Committee. During the daylong hearing, which was also attended by Jeff Bezos, Mark Zuckerberg and Sundar Pichai, Cook was pressed to answer questions about how Apple works with developers to make apps available via its digital marketplace and whether it has exerted unfair control over that process.

This article was originally published by The Hollywood Reporter.

Must Read

Mariah Carey, Halsey & More Show Love for Britney Spears After Court Hearing

Britney Spears publicly addressed the court Wednesday (June 23) with an incredibly harrowing account of her controversial conservatorship, and her Hollywood peers came out to voice...

Tomorrowland Declares 2021 Festival Officially Canceled

Tomorrowland 2021 is no more. Organizers of the massive dance festival in Boom, Belgium, said Wednesday that they have raised the white flag once and...

Blink-182’s Mark Hoppus Reveals Cancer Diagnosis

Blink-182 singer and bassist Mark Hoppus shared Wednesday (June 23) that he has cancer and has been undergoing chemotherapy for the last three months. The 49-year-old...

Britney Spears Likens Conservatorship to Sex Trafficking at LA Court Hearing: ‘I Am Not Here to Be Anyone’s Slave’

Britney Spears made it clear she would like to end her 13-year conservatorship in court on Wednesday afternoon (June 23), passionately pleading her case...

After Long Delay, India Launches International Singles Chart

MUMBAI — Nearly three years after its scheduled launch date, India finally has an official music chart. Trade body the Indian Music Industry (IMI), which...